I have been using an Alto 800 Lxi for 2.5 years. I generally go for any product which is the highest selling, as there would apparently be a good reason for that. The other thing I look for is cost - it should be reasonably priced, have good mileage and low service costs. The Alto 800 seemed to fit my bill.
I got a car which cost about a lakh less than the competition(Eon, at that time), for similar features. I got a good resale price for my lovely old Maruti 800 and an exchange bonus. Also an additional discount of 35k plus some free accessories thrown in like the left mirror, central locking and discounted seat covers.
The Good-
I love the handling, the power steering is responsive, and the Alto has a small turning radius.The suspension is probably the best in a micro car - Eons ahead of the Eon! The gear shift is a big improvement over the previous generation Alto, and the clutch is quite smooth. It comes with a powerful AC and a spacious boot(for a micro car), dual tone interiors, side mirror adjustments, a basic music system and remote boot and fuel tank lid openers.Also the mileage is good, I get 16 in Bangalore traffic and 20 on the highway.
The Not So Good-
The car is light and not very well built; I had a few minor accidents and the damage to the car was disproportionate. Marutis famed service centers are plentiful and do a good job, but they are not cheap either. Most try to fleece you for some minor reason or the other. It is better to give your car to Bosch, Carz or First choice, after the free services are over. Do not go for the extended warranty, as you would never see even a one rupee benefit, thanks to Marutis intransparent service costing.The seats are cheap without adequate cushion support, and reek of cost-cutting efforts. The tyres resemble cycle tyres and pose problems while turning at high speeds. The exterior is exactly what it is meant to be - look like a cheap car. The glove box is very small and so is the bottle holder. The back seat can seat only 2 adults unlike the old Alto or Maruti 800. You also have to plan in advance for any overtaking manoeuvres on the highway, as the acceleration is much less compared to a K10.
Verdict-
The Alto 800 is a good car if you are strictly on a budget and your requirement is to get from point A to B in relative comfort. However, if you can stretch your budget by a lakh its better to go for a car like the Wagon R, which doesnt feel so cheap and is more spacious.